The board of Poonawalla Fincorp Ltd. has approved the sale of its housing subsidiary Poonawalla Housing Finance Ltd. to TPG (Perseus SG Pte. Ltd.), an entity affiliated to TPG Global, LLC, at a valuation of ₹3,900 crore, subject to regulatory approvals.
“The transaction will maximise the shareholders’ value in the long term as Poonawalla Fincorp focusses on building a tech-led and digital-first financial services company, with leadership in consumer and MSME financing,” Poonawalla Fincorp said in a statement.
The firm said it will continue to work towards achieving its stated Vision 2025 at a standalone level with focus on growth, asset quality and profitability. Chairman Adar Poonawalla said, “Financial services business is of strategic importance to us, and we stay fully committed towards creating value for all our stakeholders and building Poonawalla Fincorp into a new age financial services player of choice.”
“Poonawalla Fincorp will continue to focus on its growth coming from Tech-Led businesses and a branch-lite model while Poonawalla Housing will follow its own differentiated path as a completely independent business,” he said. “As a global leading investment firm, TPG’s experience in building and supporting leading financial services companies will add greater value to Poonawalla Housing,” he added.
Abhay Bhutada, MD, Poonawalla Fincorp, said, “The transaction will further support our growth strategy, given the huge market opportunity and our demonstrated execution excellence.”
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